Taxes
25 June 2021

Six major VAT changes for e-commerce

Changes of VAT rules with an effect on cross-border e-commerce will take place as of 1 July 2021. They will impact mainly online sellers who sell goods to consumers and digital platforms. Consumers who import goods in consignments from non-EU countries for their own needs, as well as other persons carrying out import of goods from third countries for their business activities will be affected.

Elvíra Ungerová

We informed you about these changes earlier in a separate article.

The six major changes comprise:

  • new VAT rules for distance sales of goods within the EU and introduction of a concept of distant sales of imported goods,
  • abolition of the existing threshold for intra-EU distance sales of goods (EUR 35 000/ EUR 100 000) and its replacement by a new EU-wide threshold of EUR 10 000,
  • introduction of special provisions whereby a business facilitating supplies through the use of an online electronic interface (such as online marketplace, platform or similar means) is deemed for VAT purposes to have received and supplied the goods themselves,
  • removal of VAT exemption at importation of small consignments up to EUR 22,
  • extension of the scope of the one stop shop regime (OSS) and creation of a new special scheme for distance sales of goods imported from third countries – Import One Stop Shop (IOSS),
  • Introduction of simplification measures for distant sales of imported goods in consignments not exceeding EUR 150 in case the IOSS is not used.

Web Portal of the Slovak Finance administration on the e-commerce project

The Slovak Finance Administration published specific subpages of their web portal dedicated to:

A new e-commerce portal was launched for customs clearance of goods in consignments from non-EU countries not exceeding EUR 150 to be used from 1 July 2021. You can find out more here.

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